Lawyers on both sides of the personal injury fence have welcomed proposals for the financial upkeep of the Ministry of Justice-supported road traffic accident portal to be shared.
At the Post Claims Club on 20 April, independent chairman of the RTA Portal Tim Wallis admitted the issue of funding for the portal has been identified as a major barrier to the system’s future development.
Mr Wallis told delegates that the claimant legal sector could not embrace the portal as a true joint venture until the issue had been addressed: “So far, the portal has been funded by insurers, as was the agreement. But the claimant lawyers have said it is no good having a joint venture if they can’t have a 50% stake.
“Therefore, changes are being put in place to find ways where insurers will only have to pay half of the costs, with the other half being paid by lawyers.” However, no timeframe for implementing such a change to its funding has been set.
Peter Allchorne, a member of the Forum of Insurance Lawyers’ motor sector focus team, told Post it is crucial for the legal sector to begin to make a stronger contribution: “The portal exists for the mutual benefit of claimants and defendants alike. It must, therefore, follow that both sides should contribute equally to the running of the portal, and this must extend to the issue of funding.
“This does, of course, assume sufficient margins within the existing MoJ fixed fees to enable lawyers to pay their way and may, in turn, suggest a need for the fixed fees to be revisited.”
Susan Brown, director at claimant law firm Prolegal, told Post that such a move would address accusations of the portal being dominated by insurers: “Prolegal would welcome this move. If the portal is jointly owned, any developments or changes will be by way of negotiations on equal terms between claimants and insurers. If only insurers hold the purse strings it would be solely up to them to decide when to spend money on it and how much.”
The Law Society, the representative body for solicitors in England and Wales, was unavailable to respond on developments as Post went to press.
An Association of British Insurers’ spokesman declined to comment on the RTA Portal funding arrangements, but reiterated its support for expanding electronic resolution: “It is important the portal is a success â and we would even like to see it extended to cover claims up to £25 000. We welcome any move to make the portal as effective as possible.”
Original Article: Post
Source: Claims Standards Council
